We experimentally investigate purchase decisions with linear and nonlinear pricing under risk. The experiment is based on a single period stochastic inventory problem with endogenous cost. It extends classic binary lottery experiments to test standard decision theoretic predictions concerning...

We conduct an experiment to test standard theoretical predictions concerning switching behavior in a rebate and a discount scheme. Beyond theoretical expectations we find that rebate and discount schemes exert a significant attraction that enhances the potentially exclusionary effect of the...